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CFTC and NFA Regulatory Relief for FCMs and IBs

April 23rd | 2020



Today the CFTC issued a no-action letter to futures commission merchants (FCM) and introducing brokers (IB) addressing the net capital treatment of covered loans obtained under the Paycheck Protection Program (PPP) and unpaid FINRA assessment fees. PPP is a component of the Coronavirus Aid, Relief, and Economic Security Act administered by the Small Business Association.


Subject to several conditions, the no-action letter allows any FCM or IB that receives a PPP-covered loan to add back to its capital the eligible forgivable expense amount under the PPP when computing adjusted net capital under CFTC Regulation 1.17. The letter also permits any FCM or IB that is an SEC registered broker-dealer and qualifies as a small firm (under FINRA By-laws) to add back to its capital, when computing adjusted net capital under CFTC Regulation 1.17, the amount of any accrued and unpaid FINRA 2020 annual assessments permitted to be deferred by FINRA's guidance.


The NFA is issuing similar relief from NFA requirements for FCM and IB Members that are in compliance with the terms of the CFTC's no-action relief. NFA has a dedicated COVID-19 webpage that is regularly updated as changes happen.

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